On Our Radar

On Our Radar

Merck 4Q Net Tops Street View, Sales Fall Short

Merck (MRK) revealed on Thursday it swung to a stronger-than-expected fourth-quarter profit as the big drug maker benefited from fewer charges and a 2% rise in sales.

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The blue-chip company said it earned $1.51 billion, or 49 cents a share, compared with a loss of $531 million, or 17 cents a share, a year earlier. The year-earlier loss was caused in part by a $1.7 billion writedown tied to its anti-clotting treatment Vorapaxar.

Like most big drug makers, Merck is grappling with the expiration of U.S. exclusivity deals on key revenue-driving drugs like Singulair.

“We closed out 2011 with a high-quality fourth quarter by growing the top and bottom lines. Our overall performance for the year confirms our ability to achieve strong operating results while investing for the longer term,” CEO Kenneth Frazier said in a statement.

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Looking ahead, Merck projected full-year non-GAAP earnings of $3.75 to $3.85 a share, compared with a profit of $3.77 a share in 2011 and estimates from analysts for $3.83. Revenue is expected to be nearly flat at last year’s $48 billion, while Wall Street had expected $47.6 billion.

“As we begin 2012 and look ahead, we are optimistic about our underlying business, our current momentum and the early success of our strategy,” Frazier said.